Lombok

Twenty years ago astute developers were snapping up prime real estate in Lombok, which was then being hailed as the new Bali. Situated just east of the ‘Island of Gods’ and separated by the Lombok Straits, which marks the dividing line between the Australasian and Indomalayan eco-zones, Lombok has better beaches than Bali, bigger surf breaks, a bigger volcano and more varied landscapes. Land prices however, didn’t take off as expected due largely to religious tensions which flared into three days of rioting in January 2000. The disturbances and subsequent media coverage decimated tourism numbers, and investors fled on masse. Lombok may have missed out on tourist dollars over the years but its peoples’ culture and the island’s natural heritage have also been spared the damage frequently wrought by popularity.

Much like the effect of the Bali bombings, Lombok’s reputation as a destination has suffered somewhat unfairly through the reporting that followed 2000 riots, but things seem to be on the turn. Investors from the Middle East have been focusing on Lombok in increasing numbers and some massive developments are in the offing. Lombok’s infrastructure has also been developing in recent years and a new international airport is among plans to improve the island’s accessibility. The direct international flights to Lombok are set to rapidly expand with the promised new airport, meaning the beaches close to its planned southern location have suddenly become hot property. In 2000, beachfront property in Lombok could be picked up for US$220 per Are (100sqm) or US$9,600 an acre. Today, prime beachfront is going for 10 times that.
Condos
Condominiums are not a popular choice for those choosing to buy into Lombok at present, largely on account of the fact that there is ample beachfront still to be developed in all major areas. However, news that Emaar Properties, the Dubai-based real estate giant, is set to launch a massive 1,200-hectare project on the pristine Mandalika Beach at a cost of an estimated US$600 million, means that condos and apartments might soon become more prevalent both because the project is expected to include an apartment aspect and as a result of the land price hike its construction is set to bring about.
A mooted relaxation of overseas ownership laws is another factor set to trigger development. Indonesian Property Studies Chief Analyst Mr Simanungkalit was quoted as saying: “The time is right to give access to more foreign firms, which could contribute US$10 billion of investment over the next five years.”
Houses and Land
All the talk in terms of land and villas is of Emaar’s Lombok project, which promises to be an environmentally-friendly development that integrates natural elements into a residential, leisure and hospitality zone. The development will boast a 7km natural waterfront, which will support a marina as well as luxury residences and resorts by five-star hospitality chains. If the plan is implemented, Emaar Properties hopes to attract around 2 million tourists from the Middle East every year to Lombok island.
Other developers are also looking at Lombok as a potential location for high-end overseas buyers. The Datu for example, is a collection of 23 private estates designed by leading Indonesian architect Budi Pradono. Situated on 25,000sqm of land in Medana Bay on the island’s northwest coast 45 minutes’ drive from Lombok Airport, The Datu features 15 two-bedroom villas, six two-storey residence villas, one honeymoon suite and private beach house, all with swimming pools. Other facilities include a spa, gym, library, covered parking, beach club and a dramatic waterfront restaurant and lounge.

Propil Land Development, headed by Ahmad Yadi, is behind the eye-catching project, which is situated close to Medana Resort, The Oberoi Lombok, Sire Beach and the Kosaido Golf Course. The three-strong cluster of Meno, Air and Trawangan islets are just offshore, while the mythical Mount Rinjani can be seen inland.
With international companies like Emaar leading the way, and government incentives to ease foreign investment and visa restrictions, Indonesia might hopefully take its rightful place among the other booming economies in Asia as a stable, solid trustworthy location for foreign investment.